Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication Corporation at the beginning of the current fiscal year: Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) .... Paid-In Capital in Excess of Par-Preferred Stock. $ 4,800,000 210,000 Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) ... 15,750,000 .... Paid-In Capital in Excess of Par-Common Stock. Retained Earnings 1,400,000 52,840,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 87,500 shares of treasury common for $8 per share. b. Sold 55,000 shares of treasury common for $11 per share. c. Issued 20,000 shares of preferred 2% stock at $84. d. Issued 400,000 shares of common stock at $13, receiving cash. e. Sold 18,000 shares of treasury common for $7.50 per share. f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication Corporation at the beginning of the current fiscal year: Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) .... Paid-In Capital in Excess of Par-Preferred Stock. $ 4,800,000 210,000 Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) ... 15,750,000 .... Paid-In Capital in Excess of Par-Common Stock. Retained Earnings 1,400,000 52,840,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 87,500 shares of treasury common for $8 per share. b. Sold 55,000 shares of treasury common for $11 per share. c. Issued 20,000 shares of preferred 2% stock at $84. d. Issued 400,000 shares of common stock at $13, receiving cash. e. Sold 18,000 shares of treasury common for $7.50 per share. f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Diamondback Welding & Fabrication Corporation sells and services pipe welding equip-
ment in Illinois. The following selected accounts appear in the ledger of Diamondback
Welding & Fabrication Corporation at the beginning of the current fiscal year:
Preferred 2% Stock, $80 par (100,000 shares authorized,
60,000 shares issued) ....
Paid-In Capital in Excess of Par-Preferred Stock.
$ 4,800,000
210,000
Common Stock, $9 par (3,000,000 shares authorized,
1,750,000 shares issued) ...
15,750,000
....
Paid-In Capital in Excess of Par-Common Stock.
Retained Earnings
1,400,000
52,840,000
Transcribed Image Text:During the year, the corporation completed a number of transactions affecting the
stockholders' equity. They are summarized as follows:
a. Purchased 87,500 shares of treasury common for $8 per share.
b. Sold 55,000 shares of treasury common for $11 per share.
c. Issued 20,000 shares of preferred 2% stock at $84.
d. Issued 400,000 shares of common stock at $13, receiving cash.
e. Sold 18,000 shares of treasury common for $7.50 per share.
f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share
on common stock.
g. Paid the cash dividends.
Instructions
Journalize the entries to record the transactions. Identify each entry by letter.
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